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Employee Stock Ownership Plans


1) What is an ESOP?

a) A Brief History


2) How do ESOPs Work?


3) Uses of ESOPs

a) Buying the Stock of a Retiring Owner

b) Employee Benefit or Incentive


4) Tax Advantages for Business Planning

a) Introduction

b) Deductibility of ESOP Contributions

c) Deductibility of Dividends


5) Types of ESOPs                                      

a) Non-Leveraged ESOP

b) The Leveraged ESOP

                        i) Setting up a Leveraged ESOP

c) A “Seller Financed” ESOP


6) Employee Vesting           


6) Distributions

a) ESOP Rollover (Tax Deferral)

         b) Floating Rate Notes           


7) How to Establish an ESOP


8) Exploring the ESOP Concept


9) Designing the Specifics


10) Special Planning Techniques with an ESOP

a) The use of a Charitable Trust

b) The use of a Family Limited Partnership


11) S-Corporations/Special Tax Considerations


12) Special Fiduciary Liability Rules under ERISA for ESOPs

            a) The purchase price does not exceed fair-market value.

            b) The prudent man standard also is complied with.

c) Prohibited Transactions and Special Exemptions


13) Accounting Considerations

a) Liabilities

b) Equity

c) Income

d) Dividends

e) Earnings per Share

f) Disclosures


14) Repurchase Liability


© 2017 The Wealth Preservation Institute • St. Joseph , MI • (269) 216-9978